Product Features(HKTDC Electronic Components & Parts, Vol 04,2001)

Critical Factors

Among the range of
PCBs from Elec & Eltek Int'l Ltd are a six-layer add-on card (top)
and a 12-layer overhead projector board (bottom).

ESSENTIAL, invisible, but nearly always present, printed circuit
boards (PCBs) are key components in most of the modern electronic products
surrounding consumers in their daily lives.

Hong Kong holds an enviable reputation as a leading supplier of these critical
components that are driving forces inside everything from consumer electronics
equipment, computers and telephones to cars and cash registers.

The company's plants concentrate on mass production of rigid multi-layer PCBs
of up to 24 layers. The company is planning a new plant in Guangzhou dedicated
to mass production of back plane PCBs that can be as large as 24x36 inches.
Typically, these are used for telecoms base stations, switches, computer servers
and industrial controllers.

Elec & Eltek has developed a new service called Quick Turn Around (QTA)
that is totally flexible and allows it to offer small batches, often on very
short lead times. This service helps customers get to markets quicker.

The company's major markets include the US, Europe, Japan and most of Asia
where its PCBs are used by international brands.

Techni Technology Ltd, which has Chinese mainland factories employing more
than 200 workers in Dongguan and Shanghai, produces up to 80 sq km of single-
and double-sided PCBs per month.

Minimum order value starts at US$5,000 FOB Hong Kong for overseas markets
and at HK$3,000 (US$385) per shipment for the local market. Shipment is after
2-3 weeks, depending on an order's nature and destination.

"The materials we use include FR1, FR2, FR4, CEM1, CEM2 and XPC, but
we also have been developing a new technology in the last few years that allows
us to supply Silver-Through-Hole and Carbon-Through-Hole PCBs," says
sales manager Michael Chu.

"Another of our specialty services is the production of high-resistance
carbon printing on PCBs. This is used in electronic-game units and various
keypads."

Founded in 1993, Techni recently secured an ISO 9002 certificate. The company
sells most of its PCBs for use in telephones, consumer electronics, toys and
games on the Chinese mainland and in Hong Kong. The major customers include
GEW, Horiden and Primax.

Global Circuits Board Co Ltd, which takes pride in quality service, prompt
delivery and reasonable prices, will provide quotations and technical solutions
within 24 hours. More than 1,000 workers at its Chinese mainland factory produce
up to 60,000 square metres of single-sided PCBs (to a maximum of eight layers)
per month.

Fourteen-year-old Global has no minimum order requirements and can supply
samples in 7-10 days with mass production quantities available within 10-14
days. Its major markets are the US, Japan, Malaysia, Thailand and Germany.

YT Development Ltd can produce 10,000-15,000 square metres of single-sided,
double-sided and multi-layer PCBs (up to six layers) each month. There is
no minimum order, and shipment times range from three days for single-sided
models to five days for double-sided and six days for 4-6 layered PCBs.

Since beginning in 1997, YT Development has found most of its customers in
Hong Kong, the US, Russia, India, the UK and the Chinese mainland.

Scitech Int'l Co Ltd has three joint ventures in Zhuhai on the mainland. These
factories employ more than 1,000 workers producing flexible and rigid PCBs
up to 16 layers for sale to customers in Europe, the US and Middle East.

"Each of our Zhuhai production facilities can produce 300,000 square
feet of single-sided, 300,000 square feet of double-sided and 200,000 square
feet of multi-layered PCBs. That is a total of 800,000 square feet each month,"
says general manager Thomas Ip.

"Depending on how many layers a customer wants, we can ship comfortably
within 2-4 weeks. We stipulate no minimum amount, but prefer orders to start
at about HK$10,000 [US$1,282]."

Wraparound Technology

ALTHOUGH seemingly simple, with wire wrapped around a core, coils are essential
components in nearly all electronics products from computers and telecoms
equipment to appliances and toys.

The latest industry development is Surface Mount Technology (SMT), requiring
less space on printed circuit boards (PCB) than traditional coils.

Goldchem Industrial Ltd, an ISO 9002-certified company established in 1992,
is developing SMT compatible with an expanding variety of products.

Manager Fanny Wong says SMT worked with Japanese machines, but its small
size made it difficult to apply in some US or German machines. "Our SMT
coil can be used in these machines. We are developing it now and hope it will
be ready by late this year," she adds.

Goldchem produces air coils, choke coils, balun trans coils and toroidal
coils, each month shipping 80 million air coils alone. The company has factories
in Taiwan and on the Chinese mainland, with offices in Hong Kong, Japan and
Taiwan. Its major markets are the mainland, Taiwan, Japan, the US and Germany.
There is no minimum order, and shipments are within one month after order
confirmation.

Another company keen on SMT is C.T.C. Coils Ltd, an ISO 9002-certified enterprise
operating since 1985.

C.T.C. Coils has a diverse range of electronic components, so customers can
get all they need in one place. Huang says quality control, price and service
are all important. Prices are HK$0.10-50.00 (US$0.012-6.30) FOB Hong Kong.

The company produces 20 million coils per month for main markets in France,
Italy, Germany, the US, Australia and the UK. The minimum order value is US$2,000
with shipment within seven days after order confirmation.

Whatever the technology, the variety of products and functions that coils
serve means factories must be flexible in order to satisfy numerous customers.
Top Leader Holdings Ltd managing director Jessica Xiao says the coil business
often involves customized work.

"Most of our products are designed by customers, but we can also create
designs to customer specifications because we have 30 experienced engineers,"
she says.

Top Leader began in 1995 amid strong demand for coils. The ISO 9002-certified
company has three factories in Shenzhen on the Chinese mainland, where 1,300
employees produce 5-7 million coils per month. A minimum order is 1-5 million,
depending on items. Delivery is within three weeks of order confirmation.

Top Leader's major market is the US, accounting for about 50% of business,
but it also sells to Asia, including the Chinese mainland, Singapore and Malaysia
(35% of business), and Europe.

"We do a lot of coils for telecoms products that must perform well in
high frequency. Another main product is UPS (uninterruptible power supply),"
Xiao says.

"Most customers want us to use raw materials (cores and wires) from Japan
and Taiwan because those seem to perform better in high- frequency circumstances."

Kenlott Electronics Co Ltd also makes a wide selection of coils, having created
more than 500 such products since 1992. Some are standard designs while others
are custom-made.

Export manager Kenny Chan says prices vary as much as the products - from
about HK$0.24-24 (US$0.03-3) FOB Hong Kong.

"About 90% of our sales are to Hong Kong and the Chinese mainland to
make toys, computer products and other electronics items. These can be customized
to such different (end-user) markets as the US and Europe," he says.

Kenlott is ISO 9002-certified and has an 800-worker factory on the Chinese
mainland producing various quantities of coils, depending on type. There is
no minimum order, and lead time is within 30 days.

Sockets To Success

Jacks& Sockets

Nine New Electronics
Co offers this array of phone jacks, DC jacks and RCA jacks. Major markets
include Japan, the US, India, Singapore, South Korea and Spain.

ALWAYS aware of specific customer requirements, Hong Kong manufacturers are
major suppliers of jacks and connectors that fully reflect the diverse demands
of the burgeoning electronic components industry.

"Our products are mainly compact and are used for smaller items like
MP3 players and digital cameras," says marketing manager Philip Wong.

Established in 1986, Tinnex exports to major markets in the Chinese mainland,
the US and Europe. There is no minimum order, and shipment is after 3-7 days.

Tinnex is poised for ISO 9001 certification. "The documents are ready,
and we are undergoing the production operation," Wong says.

The company has just designed a new range of jacks. "To suit the market,
we design new components, such as phone jacks with a four-contacts function.
These are widely used in telecoms and mobile products," Wong says.

"We choose the best materials in order to make manufacturing easy and
keep costs low. These jacks will soon be available in SMD and PCB forms."

Minimum order is 5,000 pieces with shipment 14 days after order confirmation.

The nine-year-old company is proud of using the latest technology from Japan.
Already popular in Europe, digital TV has yet to reach much of Asia. Yet within
a few years, all television sets will be digital, Cheng predicts.

"The life of 'old' television is almost over, and digital TV will become
the most widely used in the world. It has great potential," says Cheng.

Major markets for the 21-pin scart connectors - of which the company makes
three million per annum - are Germany, elsewhere in Europe and the US.

Diamond Electronics has acquired land adjacent to its six-year-old factory
near Shantou on the Chinese mainland. There workers are building a much larger
facility to cope with rising production demand. "Construction is almost
finished, and the new factory will open later this year," Cheng says.

Then Diamond Electronics will apply for ISO 9001 certification. The company
already follows ISO guidelines and procedures.

"Our customers are mainly in the US and Europe," he adds. "Buyers
can provide specifications for made-to-order pieces or purchase from an existing
range."

The 24-year-old company has about 400 workers at its 20,000-square-metre factory
at Huidong on the Chinese mainland. The company has had ISO 9002 certification
since 1997. Raw materials for its 300-item product range are sourced from
Japan and Taiwan.

Dongbo Industries Ltd, a maker of RCA jacks, S-VHS jacks and AC sockets, is
poised to seek ISO 9001 certification. "We will apply in a few months,
although we already do everything to ISO standards," says managing director
Lee Kwang-hee.

Its major markets are global, including the US, Europe, the Chinese mainland
and much of Asia. "If a customer needs connectors for digital television,
we can do it. We also produce set-top boxes," Lee says.

Monthly output reaches two million pieces, and shipment is after 30 days.
About half the production is custom-made from ABS and copper strip.

Dongbo Industries has 180 workers at its factory in Dongguan on the Chinese
mainland. The company has another factory in South Korea.

Its engineering, design and production teams deal with orders for custom-made
products or from an existing range.

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